Report Id: SNS/ICT/2352 | July 2022 | Region: Global | 136 Pages
Report Scope & Overview:
The Optical Communication and Networking Market size was valued at USD 23.64 Bn in 2022 and is expected to reach USD 44.15 Bn by 2030, and grow at a CAGR of 8.12% over the forecast period 2023-2030.
Optical communication is any type of communication in which light, rather than electrical current, is used to carry the signal to the remote end, whereas optical networking is a method of communication that uses light-encoded signals to transmit information and data among various nodes of a telecommunications network. Based on data rate, optical communication and networking are divided into three categories: up to 40 GBPS, higher than 40 GBPS to 100 GBPS, and greater than 100 GBPS. Because of the rapid growth of 5G and high-performance services supplied by cloud networks, and providing data security in high-capacity broadband networks, most industries demand more than 100 GBPS.
The optical communication and network have no speed or bandwidth constraints, are flexible, have little power loss, are very secure, and are immune to electromagnetic interference. Optical networks provide high-speed data transfer using light as optic signals or infrared rays. They are used in a variety of industries, including manufacturing, government, submarines, aerospace and defense, transportation, oil and gas, mining, communications, and healthcare.
Increased need for small, energy-efficient transceivers.
Global usage of cloud-based and virtualization services is increasing.
The number of data centers is increasing.
High initial outlay.
Enhanced network complexity.
Telecom infrastructure expansion in emerging economies.
VOIP, LTE, and 5G network deployment and IoT adoption.
Network expansion in poor nations.
Customer demand for portable devices and fast speed is always evolving.
Optical networks are vulnerable to hacking.
Optical fibers’ susceptibility to physical damage and transmission losses.
IMPACT OF COVID-19:
The COVID-19 epidemic has had a substantial impact on the optical communication and networking equipment sector. Many manufacturers had supply issues at the onset of the epidemic as a result of suspended manufacturing. The market for residential, corporate, and industrial building automation systems has fallen as a result of lockdown measures and the shutdown of non-essential operations. As a result, the production and supply of optical communication and networking equipment are reverting to normal levels. The construction business is projected to see a sharp decline this year as a result of the ongoing COVID-19 crisis. A steady rebound, though, is likely to begin next year. It is also predicted that the building industry would suffer several obstacles, resulting to the COVID-19 crisis and stagnation in many nations. Furthermore, the prolonged crisis is projected to have a significant detrimental influence on the global building industry. However, Europe is expected to see positive growth rates next year, followed by stabilization in 2022.
In 2021, the optical transceiver category represented most of the optical communication and networking equipment market by component. This expansion is mostly related to the introduction of technological developments such as AI, machine learning, and 5G connectivity, which result in a rise in data traffic, creating a demand for large-scale data centers. During the forecast period, the optical transceiver sector is expected to develop at the fastest CAGR. The increased usage of the internet by smartphones and other connected device users, as well as the adoption of cloud computing as a mainstream IT deployment option, drives up demand for data centers. These factors are projected to enhance the optical transceiver segment's growth in the near future.
The market is divided into three segments based on technology: SONET, WDM, and Fiber Channel. The most market share is held by WDM technology. The causes may be ascribed to the development of ROADM-based WDM networking solutions, which provide clients with quicker and larger transmission capacity networks, boosting demand for this market.
The market is divided into three segments based on application: telecom, data center, and enterprise. The data center application sector is expected to grow at the fastest rate over the projection period. The causes may be ascribed to the rising popularity of cloud computing as a mainstream deployment option, as well as the growing demand for high-speed internet by smartphones and other connected device users, as well as fast growth in internet traffic in mega data centers. This has aided the data center segment's adoption.
In 2021, the BFSI vertical held the greatest proportion of the optical communication and networking equipment market. Optical communication and networking devices are rapidly being utilized in the BFSI industry to safeguard the sensitive data of their clients, satisfy compliance criteria to assure data security, enable security audits, and minimize reputation damage caused by data breaches. As a result, the expansion of the optical communication and networking equipment market is driven by the BFSI sector.
KEY MARKET SEGMENTS:
On The Basis of Component
On The Basis of Technology
On The Basis of Application
On The Basis of Industry Vertical
IT & Telecom
Oil & Gas
Medical & Healthcare
The North American optical communication and networking industry will rise by 2028 due to the region's high concentration of cloud data centers. The presence of the world's biggest data centers, such as Facebook, Google, and AWS, in the United States, has made it the most attractive market for optical communication and networking. The increasing need for the commercialization of 5G networks is also boosting regional growth. The US government is working on strategic measures to accelerate the adoption of 5G services.
Rest of Europe
Rest of Asia-Pacific
The Middle East & Africa
Rest of Middle East & Africa
Rest of Latin America
The major key players are Arista Networks, Inc., Cisco System Inc., Fujitsu Optical Components Limited, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Mitsubishi Electric Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation
|Market Size in 2022||US$ 23.64 Bn|
|Market Size by 2030||US$ 44.15 Bn|
|CAGR||CAGR of 8.12% From 2023 to 2030|
|Report Scope & Coverage||Market Size, Segments Analysis, Competitive Landscape, Regional Analysis, DROC & SWOT Analysis, Forecast Outlook|
|Key Segments||• By Component (Optical Fiber, Transceiver, Switch, Others)
• By Technology (SONET, WDM, and Fiber Channel)
• By Application (Telecom, Data Centre, and Enterprise)
• By Industry Vertical (IT & Telecom, BFSI, Military Defense, Oil & Gas, and Medical & Healthcare)
|Regional Analysis/Coverage||North America (USA, Canada, Mexico), Europe
(Germany, UK, France, Italy, Spain, Netherlands,
Rest of Europe), Asia-Pacific (Japan, South Korea,
China, India, Australia, Rest of Asia-Pacific), The
Middle East & Africa (Israel, UAE, South Africa,
Rest of Middle East & Africa), Latin America (Brazil, Argentina, Rest of Latin America)
|Company Profiles||Arista Networks, Inc., Cisco System Inc., Fujitsu Optical Components Limited, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Mitsubishi Electric Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation|
|Key Drivers||• Increased need for small, energy-efficient transceivers
• Global usage of cloud-based and virtualization services is increasing
|Market Opportunity||• Telecom infrastructure expansion in emerging economies
• VOIP, LTE, and 5G network deployment and IoT adoption
Frequently Asked Questions (FAQ) :
Ans: - The forecast period of the Optical Communication and Networking market is 2022-2028.
Ans: - Increased need for small, energy-efficient transceivers and global usage of cloud-based and virtualization services is increasing.
Ans: - The segments covered in the optical communication and networking market report for study are on the Basis of Component, Technology, Application, and Industry Vertical.
Ans: - The North American optical communication and networking industry will rise by 2028.
Ans: - The major key players are Arista Networks, Inc., Cisco System Inc., Fujitsu Optical Components Limited, Huawei Technologies Co., Ltd., Juniper Networks, Inc., Mitsubishi Electric Corporation, NEC Corporation, Nokia Corporation, Telefonaktiebolaget LM Ericsson, ZTE Corporation.
Table of Contents
1.1 Market Definition
1.3 Research Assumptions
2. Research Methodology
3. Market Dynamics
4. Impact Analysis
4.1 COVID-19 Impact Analysis
4.2 Impact of Ukraine- Russia war
4.3 Impact of ongoing Recession
4.3.2 Impact on major economies
188.8.131.52 United Kingdom
184.108.40.206 South Korea
220.127.116.11 Rest of the World
5. Value Chain Analysis
6. Porter’s 5 forces model
7. PEST Analysis
8. Optical Communication and Networking Market Segmentation, by Component
8.1 Optical Fiber
9. Optical Communication and Networking Market Segmentation, by Technology
9.3 Fiber Channel
10. Optical Communication and Networking Market Segmentation, by Application
10.2 Data Centre
11. Optical Communication and Networking Market Segmentation, by Industry Vertical
11.1 IT & Telecom
11.3 Military Defense
11.4 Oil & Gas
11.5 Medical & Healthcare
12. Regional Analysis
12.2 North America
12.3.6 The Netherlands
12.3.7 Rest of Europe
12.4.2 South Korea
12.4.6 Rest of Asia-Pacific
12.5 The Middle East & Africa
12.5.3 South Africa
12.6 Latin America
12.6.3 Rest of Latin America
13. Company Profiles
13.1 Arista Networks, Inc.
13.1.2 Products/ Services Offered
13.1.3 SWOT Analysis
13.1.4 The SNS view
13.2 Cisco System Inc.
13.3 Fujitsu Optical Components Limited
13.4 Huawei Technologies Co., Ltd.
13.5 Juniper Networks, Inc.
13.6 Mitsubishi Electric Corporation
13.7 NEC Corporation
13.8 Nokia Corporation
13.9 Telefonaktiebolaget LM Ericsson
13.10 ZTE Corporation
14. Competitive Landscape
14.1 Competitive Benchmarking
14.2 Market Share Analysis
14.3 Recent Developments
An accurate research report requires proper strategizing as well as implementation. There are multiple factors involved in the completion of good and accurate research report and selecting the best methodology to compete the research is the toughest part. Since the research reports we provide play a crucial role in any company’s decision-making process, therefore we at SNS Insider always believe that we should choose the best method which gives us results closer to reality. This allows us to reach at a stage wherein we can provide our clients best and accurate investment to output ratio.
Each report that we prepare takes a timeframe of 350-400 business hours for production. Starting from the selection of titles through a couple of in-depth brain storming session to the final QC process before uploading our titles on our website we dedicate around 350 working hours. The titles are selected based on their current market cap and the foreseen CAGR and growth.
The 5 steps process:
Step 1: Secondary Research:
Secondary Research or Desk Research is as the name suggests is a research process wherein, we collect data through the readily available information. In this process we use various paid and unpaid databases which our team has access to and gather data through the same. This includes examining of listed companies’ annual reports, Journals, SEC filling etc. Apart from this our team has access to various associations across the globe across different industries. Lastly, we have exchange relationships with various university as well as individual libraries.
Step 2: Primary Research
When we talk about primary research, it is a type of study in which the researchers collect relevant data samples directly, rather than relying on previously collected data. This type of research is focused on gaining content specific facts that can be sued to solve specific problems. Since the collected data is fresh and first hand therefore it makes the study more accurate and genuine.
We at SNS Insider have divided Primary Research into 2 parts.
Part 1 wherein we interview the KOLs of major players as well as the upcoming ones across various geographic regions. This allows us to have their view over the market scenario and acts as an important tool to come closer to the accurate market numbers. As many as 45 paid and unpaid primary interviews are taken from both the demand and supply side of the industry to make sure we land at an accurate judgement and analysis of the market.
This step involves the triangulation of data wherein our team analyses the interview transcripts, online survey responses and observation of on filed participants. The below mentioned chart should give a better understanding of the part 1 of the primary interview.
Part 2: In this part of primary research the data collected via secondary research and the part 1 of the primary research is validated with the interviews from individual consultants and subject matter experts.
Consultants are those set of people who have at least 12 years of experience and expertise within the industry whereas Subject Matter Experts are those with at least 15 years of experience behind their back within the same space. The data with the help of two main processes i.e., FGDs (Focused Group Discussions) and IDs (Individual Discussions). This gives us a 3rd party nonbiased primary view of the market scenario making it a more dependable one while collation of the data pointers.
Step 3: Data Bank Validation
Once all the information is collected via primary and secondary sources, we run that information for data validation. At our intelligence centre our research heads track a lot of information related to the market which includes the quarterly reports, the daily stock prices, and other relevant information. Our data bank server gets updated every fortnight and that is how the information which we collected using our primary and secondary information is revalidated in real time.
Step 4: QA/QC Process
After all the data collection and validation our team does a final level of quality check and quality assurance to get rid of any unwanted or undesired mistakes. This might include but not limited to getting rid of the any typos, duplication of numbers or missing of any important information. The people involved in this process include technical content writers, research heads and graphics people. Once this process is completed the title gets uploader on our platform for our clients to read it.
Step 5: Final QC/QA Process:
This is the last process and comes when the client has ordered the study. In this process a final QA/QC is done before the study is emailed to the client. Since we believe in giving our clients a good experience of our research studies, therefore, to make sure that we do not lack at our end in any way humanly possible we do a final round of quality check and then dispatch the study to the client.